Chicken prices to rise in the US
Food inflation is expected in the US as prices of
chicken and pork will go up over the next couple of months, Associated Press
Overall food inflation could double this year, initially lifted by the
rising costs of fuel, corn and soybeans, some analysts predict.
Food inflation hit 4% in 2007, up from 2.4% in 2006. While beef prices were
already high, chicken and pork prices didn't reflect record costs for feed and
fuel. That is about to change as chicken and pig producers who have been losing
money slaughter more animals to decrease the supply and raise the prices they
According to Pilgrim's Pride CEO Clint Rivers, American consumers are only
just beginning to feel the impact of sharply higher food prices.
Tyson Foods, the world's biggest meat producer, forecasts that its expenses
will rise $1 bln this year, including $600 mln for corn and soybean meal and
$100 mln on grain. The balance will come from higher prices for cooking oil,
breading and fuel costs, the company said. The company recently reported a $5
mln second-quarter loss and withdrew its earnings outlook, saying feed prices
were too volatile.
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